What does it really cost to set up a bean to bar chocolate factory?
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Hi Mickey,
I totally agree with Brad, a proper business plan is a must. I did write and implement a few of them in my previous career before turning to chocolate and they included a few extra zeros compared with our current artisanal bean-2-bar chocolate project.
Also agree with an earlier comment: a decent business plan allows you to tap into bank / investors which can make all the difference between day dreaming about your company and actually getting it started.
Having said that the investment and monthly spend figures that you quoted are small but not unrealistic as such, but it's just impossible to say without the other side of the equation:
How much are you selling your products for?
Based on that, how much margin are you making on each unit you are selling (leaving aside fixed costs)?
How many units are you going to sell?
If you find out that your number of units x margin per unit eventually covers your fixed costs you're on the right track. I sometimes see people getting fixated on the margin % without thinking of the production numbers, which are just as important: say you are making a 100% margin on reindeer-shaped chocolates you import from northern Latvia, they cost you 1USD and you sell them for 2, that's a really good margin, but, assuming it takes you time and effort to source and sell your wares, unless you know for sure you can sell a couple thousands of them per month you're probably better off keeping your day job.
Cheers,
Sam